FIGURE S-3. ShortRun Marginal Cost $105 Average Total Cost Average Variable Cost $88 $55- 460 1675 600 Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? It is experiencing a loss, but should continue operating temporarily because business conditions may improve. It is earning positive economic profits. O It is earning a normal profit. O It is experiencing a loss and should shut down.

FIGURE S-3. ShortRun Marginal Cost $105 Average Total Cost Average Variable Cost $88 $55- 460 1675 600 Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? It is experiencing a loss, but should continue operating temporarily because business conditions may improve. It is earning positive economic profits. O It is earning a normal profit. O It is experiencing a loss and should shut down.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

See similar textbooks

Similar questions

A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Assume the firm can sell its product for $14 each. TR AVC TC АТС MC $2000 100 $1400 $600 $2600 $26.00 $6.00 200 $2800 $5.00 $3000 $15.00 300 $1920 $6.40 $3920 $9.20 400 $5600 3280 $8.20 $13.20 $13.60 Suppose the manager decided to sell at an output that maximized average profit. At a market price of $14, how many would he sell? would you do about this manager, and why? As the owner of this company, what
abus ules Marginal Marginal Output Revenue Cost se Materials aw-Hill ct 012 $18 $4 $18 $6 $18 $10 3 $18 $18 4 $18 $26 $37 ns Resources 5 $18 Refer to the data in the accompanying table. If the firm's minimum average variable cost is $17, the firm's profit-maximizing level of output would be. p O 1 03 04 02 200m
Answer the attached question
The blue curve on the fallowing graph represents the demand curve facing a firm that can set its own prices. Use the graph inout tool to help you answer the folowing questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white fidld, the graph and any corresponding amounts in cach grey field will change accordingly. Graph Input Tool Market for Goods 200 nguantity Semanded 20 100 Demand Price (Dolars per unt) 140 100.00 120 100 Demand 40 20 12 16 20 24 21 2 M 40 QUANTITY Iunita) On the graph inpue tool, change the number found in the Quantity Demanded feld to determine the prices that correspond to the production of 0, 8, 26, 20, 24, 32, and 40 units of output Calculate the total revenue for each of these production leveis. Then, on the fallowing graph, use the green paints (triangie symbal) to plot the resuuts. 2000 Tata Revenue 200 00 400 200 16 20 QUANTITY (Number of uni) 12 24 20 40 Calculate the total revenue if the firm produces…
The firm will A-increase its marginal revenue B increased its profits C decrease its marginal revenue D maximize its profits
A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9 A- typical textile firm in this competitive industry has a minimum long-runaverage cost of $______. The typical textile firm earns economic profit of$______ B-The textile firm with the superior plant manager could earn economic profitof $___________ per month, if no rent is paid to the superior manager C-The superior plant manager is likely to earn a salary of $______ per month,$____________ of which is economic rent
Gains from Trade - End of Chapter Problem Between 2016 and 2017, Nintendo produced 2.3 million NES Classic Edition mini consoles that sold out almost immediately as they arrived at stores. The retail price of the mini console was $59.99. However, if you were to check eBay at the time, you would see that people were buying the units for $250 each from scalpers. a. The price of $250 tells scalpers O they should continue to buy the console at the store and resell it on eBay for a higher price. they should keep the consoles they have already purchased and hang onto to them, as they will be considered antiques someday. they should no longer buy and resell the consoles because the price on eBay is too high to make a profit. b. Upon observing that the only way to obtain the gaming console is to buy it on eBay for $250, a consumer might do which of the following? Select all that apply. Consider buying another type of gaming console that is cheaper. Approach a family member about sharing the…
175 125 100 80 Price . Figure 14-7 270 322 515 MC ATC AVC Quantity Refer to Figure 14-7. Suppose AVC=$113 when the firm produces 515 units of output. Then the firm's fixed cost amounts to a. $5,500, and its profit amounts to $20,375. b. S5,750, and its profit amounts to $20,375 c. $5,980, and its profit amounts to $25,750. d. S6,180, and its profit amounts to $25,750.
Jeremy worked at a bank with a monthly salary of $1,500. He decided to quit his job and open a bookstore inhis neighborhood. He now pays $500 in rent, $80 in utilities and $120 in wages every month. He also paysthe publisher $5 per book sold. This month Jeremy sold 100 books at the price of $30 per book.a. What was the total revenue this month? Calculate this month’s explicit fixed cost, the variable costand the total cost.b. How much accounting profit did Jeremy make?c. How much economic profit did Jeremy make?d. If Jeremy had not quit his job at the bank, he could have been promoted and got a pay raise of 30percent. How would this affect his accounting profit and his economic profit?
Can you help me with 1,2,3
at the optimal output , what price will do drop in chrge and what will be its output?Price $ Output in units Also at the optimal price and output , what will be its total revenue, total cost and total lost .Please calculate the points on the graph. Please provide solution